If it takes one country one unit of labor to produce either a computer or a TV, but it takes the other country two units of labor to produce a computer and only one to produce a TV, then the first country has
A. both a comparative and absolute advantage in both goods.
B. an absolute advantage in both goods.
C. a comparative advantage in both goods.
D. an absolute and comparative advantage in production of computers.
Answer: D
You might also like to view...
The short-run Phillips curve shows ________ between the unemployment rate and the inflation rate, and the long-run Phillips curve shows ________ between the unemployment rate and the inflation rate
A) a positive relationship; a negative relationship B) a negative relationship; a positive relationship C) no relationship; a negative relationship D) a negative relationship; no relationship E) no relationship; no relationship
Which of the following empirical studies cast the most doubt on the Heckscher-Ohlin model?
A) the study by Wassily Leontief B) the study by Bowen, Leamer, and Sveikauskas C) the study by David Ricardo D) the study by Adam Smith E) the study by Davis and Weinstein
Refer to Figure 9.1. What is the maximum profit that can be achieved?
A. $250
B. $500
C. $750
D. $850
In to the Solow model, what is capital deepening? How can a country achieve capital deepening?
What will be an ideal response?